INSTANT VIEW 2-Slovak Q3 GDP up 9.4 pct y/y

...estimate of 
gross domestic product (GDP) data. 
    A Reuters poll forecast an increase of 8.6 percent. 
**************************************************************** 
 KEY POINTS  GDP 
                      Q3/07 (estimate)    Q2/07     Q3/07 fcast 
  (pct change y/y)        +9.4            +9.4        +8.6 
     
    - The Statistics Office does not release detailed data in 
its flash GDP estimate.  
    - Third quarter GDP in nominal prices totalled 482.5 billion 
crowns ($21.37 billion). 
     
 STATISTICS OFFICE COMMENT: 
    "Acceleration of GDP was related to growth of added value in 
manufacturing, particularly in manufacturing of machinery, 
electrical equipment and transportation means. From the 
expenditure side, GDP growth was influenced mainly by continued 
foreign demand, along side persistent growth of domestic 
demand." 
     
 ANALYST COMMENTS: 
 MIROSLAV PLOJHAR, ECONOMIST, JP MORGAN, LONDON 
    "The figure is a partial surprise. We do not know the 
structure yet but we can expect that firming pressures on the 
crown will remain. 
    "The structure will probably show a stronger contribution of 
foreign trade than previously. This would mean that the GDP 
growth is healthier than before. 
    "The figure will not influence the central bank's interest 
rate settings." 
     
 PIOTR MATYS, ANALYST, 4CAST, LONDON 
    "There is no breakdown provided, but domestic and offshore 
demand are likely to stay the key driving factors. 
    "We saw increase in household consumption in the second 
quarter, but even if we see further rise in the third quarter, 
the NBS should be comfortable since productivity growth outpaces 
wage growth." 
     
 MARKET REACTION 
    The Slovak crown firmed slightly after GDP data, trading at 
32.870 to the euro , compared with 32.900 earlier in 
the session. 
     
 BACKGROUND 
 - Higher-than-forecast third quarter growth should not be a 
major surprise to analysts because data showed last week an 
unexpected trade surplus for September and a downward revision 
of cumulative trade deficit for January-August. 
 - The Slovak economy has been showing one of the highest growth 
rates in the European Union in the past few years.  
 - GDP growth has been helped by rising car export volumes and 
solid domestic demand as household consumption rises after years 
of belt-tightening reforms. 
 - Investments have also increased in the past year, mainly 
thanks to large project such as car factories of French PSA 
Peugeot  and South Korean Kia Motors . 
     
 LINKS:  
- For further details on past data, Reuters 3000 Xtra users can 
click on the Slovak Statistics Office's website: 
http://wwww.statistics.sk/webdata/english/index2_a.htm        
- For LIVE Slovak economic data releases, click on...... 
- Schedule of upcoming indicator releases............ 
- Summary of short-term economic data forecasts...... 
- Stories on Slovak currency moves........................[SKK/] 
- Slovak speed money guide .............................. 
  (Reporting by Peter Laca and Martin Dokoupil) 
   
 ($1=22.58 Slovak Crown) 
  Keywords: SLOVAKIA GDP/  
    

[BRATISLAVA/Reuters/Finance.cz]